Establishing a good relationship between the buyer and seller is a most difficult task in the concept of business marketing theory. Making the seller fulfill all your demands and getting the maximum number of buyers is the toughest job both of them have to encounter. There are various dimensions in understanding the relationship of buyer and seller. Some of the dimensions are given below for the better understanding of the concept : –
- The basic relationship building block between both of them is based on the interactions of the sales representative with the buyers
- What is the perception of the buyer towards the sales person which is based on the company’s reputation
- The behavior of the sales personnel with the buyer which depends on the needs of the company, personal needs of the employees and the social needs.
Types of Buyer – Seller Relationships
Broadly three types (in a range) of exchanges or relationships between buying and selling firms:
- Transactional (distant) relationship.
- Value – added (continuing) relationship.
- Partnering / Collaborative (close) relationship.
Transactional or distant / Relationship
- It is a one time interaction of the buyer and the seller
- This type of relationship occurs when there are large number of suppliers available.
- When the supply market is constant
- There is no complexity in the purchase decision
- This method is preferred by the sellers when they feel that the buyer’s have low potentials.
- The sellers focus on low price of the product and also aim at timely delivery.
Value-Added or continuing/ Relationship
- This type of relationship occurs when there is medium sales and the potential of the buyer is also medium
- This type of relationship aims at fulfilling the needs of the buyers more than that of the competitors, that is, providing them with the maximum value.
- The main objective of the seller in this type of relationship is getting the maximum share of the market.
Collaborative or Partnership Exchange Relationship
- The basic foundation in this type of relationship is the commitment and trust between the buyer and the supplier.
- The major objective in this is to maintain a long term mutually benefitted relationship.
- Buyers prefer this type of relationship mostly where there is less choice in selection of the suppliers.
- Few buyers prefer this when there is much complexity involved in the purchase decision.
- Sellers prefer this type of relationship when they feel that the potential of the buying firms are high